2016 was a break-out year for Surgical Innovations Group PLC (LON:SUN), the medtech devices maker claimed in its results statement.
The strong numbers were not a total surprise, as the company’s share price had risen 20% back in January when it gave a sneak preview of the figures, but confirmation that the group had moved into the black saw the shares rise 6% in the morning trading session.
Profit before tax was £278,000 in 2016 versus a loss of £2.13mln the year before.
Adjusted underlying earnings (EBITDA), excluding exceptional items, rose to £1.41mln from £242,000 the year before. There were no exceptional charges this time round but in 2015 the company took a £1.29mln hit to operating profits.
Revenues rose to £6.09mln from £5.5mln the previous year, with the weakness of the pound helping boost exports.
As well as moving into the black the company also moved into a positive net cash position of £720,000 from net debt of £2.26mln at the end of 2015. All bank debt was repaid in the final quarter of the year.
"Recent regulatory changes have increased barriers for new market entrants, and strengthened the market position of those with the skills and experience to meet more stringent requirements,” said executive chairman Nigel Rogers.
The company specialises in designing devices used in minimally invasive surgery, often referred to by the man in the street as ‘keyhole surgery’ and as laparoscopic surgery by doctors who do not like to think all those years of study at medical school went to waste.
"Our core market in laparoscopic surgery is not completely immune from the effects of economic uncertainty, but health spending in this area in the UK and other developed markets is forecast to continue to grow ahead of inflation. We aim to outperform the sector as a whole by increasing market penetration through opening new territories and introducing additional products and ranges, both organically and through additional partnerships and carefully selected acquisition activity," Rogers said.